Editorials: 2021 Vol: 20 Issue: 2
OlawaleiNurudeen, University of Benin
The change in accounting rules is as a result of the weaknesses of Nigeria GAAP and low telling to people/making known needed things. IFRS reporting has more statements to people than Nigeria GAAP especially for banks. Under Nigeria GAAP related to managing money legal documents have not been classified as in IFRS. This study therefore, examines value relevance of IFRS 7compliance statements to people and the comparability between high and low following the law/doing as you're told) of listed insurance firm in the Nigerian Stock Exchange from 2012 to 2018. The study uses price Ohlson Model (1995) to establish the degree to which the accounting information of firms influences the share price figuring out the amount of money something is worth. Combined strong and healthy OLS was used to analyse the data pulled out or taken from something else from the published once-a-year related to managing money reports of studied listed insurance firms in Nigeria. The result of the findings shows that book value per share and telling to people/making known has positive and significant relationship with price per share in the first model. Results also point to/show that both earnings per share and book value per share have famous and important power in deciding/figuring out share prices in second model, but the individual effect to deciding/figuring out share price point to/show that the book value per share played a more and more large/relatively large role in projecting share prices than that of earnings per share. compared to something else, we get that book value is positively and related to numbers more value clearly connected or related than earning per share in second and the third models. In line with the findings.
Value Relevance, Compliance, Disclosure and IFRS 7.
The reasons for value relevance of full accounting telling to people/making known is that it communicates people or businesses who give money to help start businesses expectation of firms performance real time and wear away doubt and distrusts that may arise of that/of it, this way, act in a way that lessen something bads information left and right side not matching between parties to accounting use of information and reporting things/businesses (Umoren, 2015). From stock market perspectives, Alkali & Lode, (2016) stressed that (related to managing money statements presents accounting information which are a set of standard measure of value clearly connected or related for stock market performance. This validates Beisland (2009) who posits value relevance of accounting information asderivative of financial reportfrom which emerging prospects of changes in future stock prices are anticipated. In a study conducted by Barizah & Bakar (2011) value relevance of accounting information is the combination of different things together that work as one unit of factors that models a proposed econometric solid basic structure on which bigger things can be built for related to managing money processes of figuring out the worth, amount, or quality of something such as stock price test run that appears or feels close to the real thing or sensitivity analysis, book value per share (BVPS), earnings per share (EPS), price earnings ratio, etc. in a related to managing money report, the idea-based silly trick of value relevance is mostly influenced by best accounting practices for which quality telling to people/making known of related to managing money information is including a lot of debt in deciding/figuring out share prices. On the other hand, Zango (2015) stressed that the value of accounting information is that it raises people or businesses who give money to help start businesses knowing about something to what make up/be equal to competitive advantage of a firm in a sharp/eager/ well-developed business surrounding conditions such that describe a possible future event knowledge that models able to change and get better ability to hold or do something of people or businesses who give money to help start businesses reflects a good scorecards of share prices strong desire/formal decision about somethings. Therefore, it is worthy of recommendation that the value of accounting information is a factor that forms the basis for already deciding beforehand share price of public quoted firms because such information helps stock markets devices that control things/groups of people that ensure rules are followed to figure out the worth, amount, or quality of whether a firms good qualities their minimum needed things for stock market listings. Erin et al. (2017) suggest that as market information, value relevance of accounting statements to people influences people or businesses who give money to help start businesses course of actions; the three-part which test results: buy, sell, or hold existing shares under usual/commonly and regular/ healthy macroeconomic conditions and market interactions. Stocks market development is significantly figured out by/decided by related to managing money parts/areas performance, the forces of demand and supply of money makes stocks market activities source of wealth for institutional, private and individual people or businesses who give money to help start businesses of a process of people making, selling, and buying things (Alkali et al., 2015).
Alkali, Mohammed, Y., et al. (2015). The Value Relevance of Accounting Disclosures among Nigerian Financial Institutions after the IFRS Adoption the Value Relevance of Accounting Disclosures among Nigerian Financial Institutions after the IFRS Adoption. Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy (November).
Alkali, Mohammed, Y., & Nor, A.L. (2016). ISSN Relevance of Accounting the Value Disclosures among Listed Nigerian Firms: IFRS Adoption. Iranian Journal of Management Studies, 9(4), 707-40.
Barizah, N., & Abu, B. (2011). Incentives for Disclosure of Accounting Information in Public Sector: A Literature Survey. International Research Journal of Finance and Economics, 75(5).
Beisland, L.A. (2009). A Review of the Value Relevance Literature. The Open Business Journal, 2, 7-27.
Erin, O., Paul, O., & Olaoye, O. (2017). Value Relevance of Accounting Data in the Pre and Post IFRS Era: Evidence from Nigeria. International Journal of Finance and Accounting, 6(4), 95-103.
Umoren. (2015). Accounting Disclosure and Corporate Attribute, Eprints. covenantuniversity.edu.ng accessed May 3, 2013 unpublished PhD thesis.
Zango, A.G. (2015). Mandatory International Financial Reporting Standards 7 (IFRS 7) Disclosure by Listed Banks in Nigeria. Academic Journal of Interdisciplinary Studies MCSER Publishing, Rome-Italy, 4(2), 435-40.